When planning the purchase of a new car, there are other expenditures you should always account for. Chief among them are maintenance and repairs to ensure that your ride is working reliably, and insurance premiums. While the former quandary can be solved by finding a reputable local mechanic you develop a long-term relationship with, the second can be a bit trickier to plan for.
There are plenty of drivers who’ve shared their frustrating experiences with obtaining quotes to ensure their vehicles are properly covered. For instance, one Reddit user couldn’t understand why they were being quoted such vastly different rates from provider to provider for their ride.
And if you’ve recently shopped around for insurance and had your eyes bulge out of your head like a cartoon wolf upon seeing your monthly quote, this woman’s advice may interest you. TikTok user @pettynpretty95 shared how she almost always locks down a more affordable rate when she’s shopping for car insurance.
Avoid Auto Renewal
She explains that when purchasing insurance plans in six-month blocks, she’s noticed auto-renewal quotes almost always come with price hikes. So, in order to prevent this from happening, the TikToker says that she opts, instead, to take a bit of time to re-input all of her personal information to receive insurance quotes as if she were a new customer.
Consequently, she shared that this technique almost always culminates in reduced insurance premiums, compared to the initial six-month auto-renewal quotes she’s given.
“I don’t know what car insurance you have. I personally have Progressive. The way that I get a cheaper quote every single time after my six months is up is I just, every single time, go to the Progressive website, plug in all my information again—yes, it takes a few minutes of my time—instead of automatically accepting their renewal fee,” she tells viewers.
She Swears By This Insurance Savings Methodology
She says her quote is cheaper by $100-150 pretty much every time, and her friends can attest that the hack works. “You will save money; I promise,” she says.
The TikTok user’s auto-renewal gripe has been discussed by others online and is often referred to as a loyalty penalty. This pricing model isn’t particular to just insurance companies, either. Folks who’ve had to hop on the phone to argue with their internet service providers will be well aware of these hikes, too.
It’s a strategy rooted in the idea that once folks have done the legwork of signing up for a recurring service, they’re probably going to stick with a business that they know, rather than shop around for new deals. Companies, instead of valuing loyal customers who’ve forked over their hard-earned cash for sustained periods of time, decide to weaponize customers’ devotion against them.
When it comes to the auto industry, a 2024 Yahoo! article stated that “the car insurance loyalty penalty is alive and well.”
Insurance company Allen and Allen also referenced how loyalty can adversely affect the finances of those who stick with the same business for sustained periods of time. “You need to find out whether your insurance loyalty is costing you money. You need to carefully review your insurance policy and even shop for a better deal if you feel your loyalty program is hurting you financially,” it states.
Why Did My Insurance Rates Go Up?
Progressive published a list of reasons as to why drivers’ insurance premiums can increase on this FAQ webpage. According to the business, adding new vehicles or drivers, or moving to a different zip code, are usually the reasons why commuters are being quoted increased rates. “Know that insurance premiums aren’t raised on a whim, and the reason for a car insurance rate increase is almost always tied to insurance risk,” Progressive writes.
Some commenters who replied to the TikToker’s post corroborated what she said with anecdotes of their own. “I have a family member who works at Progressive. Can confirm it’s cheaper online than on the phone,” one penned.
Another said that every six months, they seek out a new provider and have no issues with jumping around if it’s going to save them money in the long run. “I switch my insurance pretty much every 6 months. I have no loyalty to anyone, especially after they keep raising my premium,” they said.
And this person on the app echoed the aforementioned sentiment. “I was auto-renewing and my bill went up to $300. Switched, now I pay $150. I know now there’s no thing as loyalty with insurance companies,” they said.
Motor1 has reached out to @pettynpretty95 via TikTok comment for further information.
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